Manufacturing Data Helps Copper Prices

LONDON, June 2 -- Copper prices were higher Monday on the news that manufacturing remained in expansion in China in May while at the same time the US dollar weakened, making metals look like a good alternative place for investors to put their cash.

    China reported last month that as of the end of April its stimulus plan had resulted in the construction of 445 kilometers of highways, 20,000 kilometers of other roads, and 214,000 new homes, with especially the new home construction implying higher demand for copper.

    US data showing that construction spending was up 0.8 percent in April from the month before also raised hopes that demand for copper, used in construction as well as in manufacturing, will rebound.

    July copper added 12 cents to $2.32 per pound in early afternoon trade in New York, while three-month copper was $245 higher to $5,075 per tonne on the London Metal Exchange, the first time in over seven months that the metal’s price has risen above the $5,000 level.

    Aluminium closed $33 higher to $1,473 per tonne in London, while zinc ended the London session with a gain of $55 to $1,610 per tonne and tin gained $450 to $14,650 per tonne.

    Among precious metals, August gold was 30 cents lower to $980 per troy ounce in afternoon trade in New York while July silver had added 13 cents to $15.74 per troy ounce and July platinum had gained $24.60 to $1,220.60 per troy ounce.

    (Source: metalmarkets.org)